1 The Institute is providing the attached RIC Contact List to the SIA and ABA.
2 The Institute is providing the attached REIT Contact List to NAREIT.
3 RICs will provide all 1998 year-end tax information directly to the designated SIA or ABA Contact.
[10547]
December 8, 1998
TO: BANK AND TRUST ADVISORY COMMITTEE No. 15-98
RE: 1998 YEAR-END TAX REPORTING
______________________________________________________________________________
The Institute has been working closely this year with the Securities Industry Association (“SIA”),
the American Bankers Association (“ABA”) and the National Association of Real Estate Investment
Trusts (“NAREIT”) to improve the uniform tax reporting procedures pursuant to which regulated
investment companies (“RICs”) and real estate investment trusts (“REITs”) will report “reclassified”
year-end tax information.
For 1998, this year-end tax information will be reported to brokers and banks using the attached
“primary” and “secondary” uniform file formats. The 1998 primary uniform file format contains the
information required to prepare IRS Forms 1099 for RIC shareholders. The 1998 primary uniform file
format retains the standard nomenclature adopted last year for the different “types” of long-term capital
gains (i.e., 28 percent rate gain, 20 percent rate gain, unrecaptured section 1250 gain and section 1202
gain). The 1998 secondary uniform file format is new and will enable RICs to provide to brokers and
banks 1998 year-end income breakdowns (1) by State for municipal bond funds and (2) by type of
security (e.g., Exempt Federal Securities, GNMAs & FNMAs, Repurchase Agreements and Other Non-
exempt securities) for other bond funds.
In addition, four “tax contact lists” have been compiled for 1998 and are attached to this
memorandum. Of these four tax contact lists, two are to be used by RICs (the “SIA and ABA Contact
Lists”), one is to be used by brokers and banks (the “RIC Contact List”)1 and one is to be used by
REITs (the “REIT Contact List”).2
The SIA Contact List was compiled by the SIA and contains a list of the names and contact
information of persons at various broker/dealers and other third-party intermediaries to whom RICs
should send 1998 year-end tax information. The ABA Contact List was compiled by the ABA and
contains a list of the names and contact information of persons at various banks to whom RICs should
send 1998 year-end tax information.3 The RIC Contact List was compiled by the Institute for the first
time this year and contains the names and contact information of persons at RICs to whom brokers and
banks receiving 1998 year-end tax information from RICs may direct questions about that information.
The REIT Contact List was compiled by the Institute and contains a list of the names and contact
4 NAREIT’s members will provide all 1998 year-end tax information directly to the designated REIT Contact.
information of persons at RICs to whom NAREIT’s members should send their 1998 year-end tax
information.4
The SIA, ABA, RIC and REIT Contact Lists and the 1998 uniform file formats are available to
Institute members on the Institute’s members-only internet home page (ICINet) that is located at
http://members.ici.org. Those Institute members with internet access who have not been issued an
ICINet password may receive one by accessing the ICINet page and completing the ICINet enrollment
form. The Institute will update the SIA, ABA, RIC and REIT Contact Lists that are posted on ICINet
periodically as new information is received.
ACTIONS REQUESTED:
1. Reporting to Brokers and Banks by RICs of Year-End Tax Information – The SIA and
ABA have requested that the RICs provide to the designated SIA and ABA Contact (1)
all year-end tax information on the 1998 primary uniform file format on or before
Friday, January 8, 1999, and (2) all year-end tax information on the 1998 secondary
uniform file format on or before Friday, January 15, 1999.
2. Corrections, Additions or Deletions to Attached Contact Lists – To facilitate 1998 year-
end tax reporting, please advise the Institute’s Gloria Davis by e-mail (to gdavis@ici.org)
or by fax (to 202.326.5841) of any corrections, additions or deletions to the attached
SIA, ABA, RIC or REIT Contact Lists.
Specific questions regarding the attached SIA, ABA, RIC and REIT Contact Lists or the 1998
uniform file formats for use by RICs in reporting year-end tax information to brokers and banks may be
directed to Justine Phoenix of the Institute's Operations Department at 202.326.5850. Other questions
regarding year-end tax reporting may be directed to the undersigned at 202.371.5436.
Deanna J. Flores
Assistant Counsel
Attachment